While new home construction remains about a third lower than last year, a report from TD Economics says the new numbers are encouraging.
The figures "provide more evidence that the Canadian economy has certainly passed the worst of what can be expected in terms of residential investment contraction," TD said in a report released Thursday.
Sales have picked up dramatically in a number of cities, including Edmonton and Toronto.
The Edmonton Real Estate Board said June's sales were third highest ever for the month.
Regionally, there was a 59.4 per cent increase in urban housing starts in the Prairie regions, a 25 per cent gain in B.C. and a slight 3.1 per cent increase in Ontario.
Analysts point to lower price and better interest rates for the spike in home sales.
However, it wasn't good news straight across the country as housing starts in Quebec fell 6.3 per cent and 3.1 per cent in Atlantic Canada.